The FTSE 100 closed up 46.74 points at 7,310.64 as big London-listed exporters gained from a dip in the pound following Therese May's Brexit speech in Florence.

Top European markets were mixed ahead of the German election on Sunday, with the DAX slightly lower and France's CAC 40 posting a small gain.

The US Dow Jones was down 27.1 points at 22,332.1 in early trading. Brent crude was at $56.73 a barrel and the pound was at $1.35 against the dollar and €1.13 against the euro.

16:52

FTSE 100 closes up 46.7 points at 7,310.6

16:31

City pundits on today's session

Chris Beauchamp, chief market analyst at IG, said: 'It has been a day of high expectations, and yet little in the way of really market-moving news.

'First OPEC, and then Theresa May in Florence. OPEC did not add much to the general picture surrounding the oil market, with a general air of "job going well so far, but more to do".

'This however failed to satisfy oil traders, who had been hoping for indications of deeper [production] cuts, rather than just an extension of existing measures. As a result, WTI [US crude] is still stuck below $51, with all the signs pointing to another turn lower for the commodity.

'Meanwhile, having been billed as one of the big events of the month, Theresa May’s appearance in Florence also proved to be a let-down.

'The speech was big on Boris Johnson-style rhetoric, with plenty of "broad sunlit uplands" stuff that spelled out how the UK wished to be a friend to the EU. But beyond that, little else.

'The pound took a bit of a knock, giving the FTSE 100 room to move higher, but beyond that the market has taken little notice. The focus returns to the negotiations, which should start again next week.

'German elections on Sunday are expected to proceed as forecast, with Angela Merkel victorious once more. Markets should only give the event a passing nod, content that Europe’s strongest pillar will remain a beacon of stability.'

David Madden, market analyst at CMC Markets, said: 'Traders are treading lightly as the North Korean tensions have ticked up. The rogue state has threatened to detonate a hydrogen bomb in the Pacific Ocean.

'To some extent, investors are used to the background noise, but every now and then, the rhetoric gets ramped up, and today is one of those days. The North Korean impact isn’t always a major sell-off, sometimes it’s a lack a bullish sentiment.

'The FTSE 100 traded above the 7300 mark after sterling slipped on the back of Theresa May’s speech about her Brexit plans in Florence.

'Traders will be eyeing the German elections over the weekend. It is widely expected that Angela Merkel will remain as Chancellor, but who will be her coalition partner remains to be seen.

'The Dow Jones, S&P 500 and NASDAQ 100 are broadly unchanged as volatility drops. Traders are cautious about the tensions surrounding North Korea, and they are sceptical about holding large positions going into the weekend.

'Investors are also questioning how serious the Federal Reserve are about rising interest rates in December. The US central bank are keeping the door open to the possibility of it, but seeing as the cost of the hurricanes has yet to be calculated, and not to mention the debt ceiling talks in three months could also pose a problem.

'Some of the money that has been ploughed into the American stock market is borrowed money, and those investors don’t want to be stretched.'

15:59

Nothing to shock markets in the speech

ETX Capital analyst Neil Wilson -

A bit of a dud, although with one important change; Theresa May’s speech was, as expected, a bit opaque, thin of detail and offered no new fundamental direction. Officially the government is now advocating a transition period, and that the UK will keep paying its subs, but this had all largely taken as read.

The key difference seems to be that Britain is no longer pushing for a bespoke transition deal, which ultimately kicks Brexit down the road by two more years, but it also is more likely to be acceptable to the EU and suggests we will see a smoother exit and this ultimately may prove positive for sterling.

Sterling slid to session lows, with cable dropping nearly a cent to under $1.35 as the market decided at first that the speech moves negotiations no further forward. And indeed it’s hard to see how this speech does much to make round 4 starting on September 25th go an awful lot smoother.

15:44

The BCC has given the speech a reasonably warm reception

Dr Adam Marshall, director general at the British Chambers of Commerce -

In the world of business, the PM's Florence speech will be judged not on its rhetoric or delivery, but on whether it begins to break the stalemate that has left companies across the UK, Europe and around the world counting the cost of uncertainty.

The Prime Minister's constructive tone and clearer offers, particularly on guarantees on EU citizens’ rights and UK contributions to the EU budget, represent an important and welcome effort to break the impasse of recent months, which has preoccupied many in the world of business.

The absolute priorities for business are to get trade talks moving, and to ensure a comprehensive transition period is in place that gives the certainty that companies need to take immediate investment and hiring decisions. It is our hope that the Prime Minister's offer will jump-start the process, and that the two sides can agree to move on to the critical issues of transition and trade as quickly as possible - and in all cases before the end of 2017.

15:17

The Prime Minister has finished her speech

Not a huge amount has actually changed. Still exiting the single market and customs union, with the aim of replacing this with a bespoke new trade and security partnership.

May confirmed a two year 'transition period' is the plan, something which business had been calling for.

No mention of the 'Brexit bill' in terms of a specific number. Just a willingness to 'honour commitments'.

Pound a touch lower at $1.35.16 or €1.128

15:04

FTSE 100 on the up

The blue chip index is being lifted by the speech and the pound's response, and now sits 0.65% up for the day at 7,311.

15:02

Pound edges down into the $1.34 area

May says an 'off the shelf' trade deal like the Canada-EU one not the best way forward and 'we can do better'.

14:43

May insists 'concrete progress' has been made in the Brexit talks

The pound is still at $1.35

14:32

May is into her speech now. Pound yet to respond much

Sterling sitting fairly still in the $1.35 area so far

14:09

The Prime Minister is due to speak any time now.....

12:37

FTSE edges into the green

The FTSE 100 has edged up 0.1% to 7,274 at lunchtime. Pound still treading water at $1.356

12:04

and the fallers

12:03

Today's top FTSE 350 risers

11:04

Smiths Group weighing down the FTSE

FTSE 100-listed electronic device maker Smiths Group has reported full year pre-tax profits of £528m, up 17% year-on-year, while reported operating profit was up 11% to £589m.

The market is unimpressed though, with the shares 5.2% lower at 1,521p

10:30

Investors will focus on 'how soft or hard the trade aspect' of May's speech will be

David Madden, market analyst at CMC Markets -

Stocks in Europe are mixed this morning as the North Korean situation has taken a new turn. Pyongyang has threatened to test a hydrogen bomb in the Pacific. This comes after Donald Trump’s speech at the United Nations, and calls for tougher sanctions against the state.

Traders are certainly keeping an eye on the developments in the region, but while there is no military action, there will be some investors who will hold their nerves through the tense stand-off.

The EUR/USD has rallied this morning after France and Germany posted impressive manufacturing and services data. The reports from both countries exceeded economists’ estimates, and showed an increase in growth on the month. The single currency has clawed back a lot of the losses it incurred against the greenback in the wake of the Federal Reserve being more hawkish than expected.

The GBP/USD will be in focus today as Theresa May is expected to deliver a speech in Florence, outlining her plans to push the Brexit negations forward. There are many areas that will be touched upon, but ultimately traders will be looking at how ‘soft’ or ‘hard’ the trade aspect will be.

We are expecting the Dow Jones to open 15 points lower at 22,344, and we are calling the S&P 500 down 1 point at 2499.

09:42

Pound flat ahead of May's speech

The pound is holding steady at $1.3576 ahead of today's events in Florence

09:16

Saga says it's on track despite a profit slip

The over-50s insurer and holiday firm Saga said it is on course to achieve its fourth consecutive year of growth despite profits being squeezed by cost pressures.

Pre-tax profits fell 6.3% to £103 million for the six months ending in July, as it took a hit from a ‘successful refinancing and net fair value losses on derivatives’.

Revenues dropped £1.8 million to £435.4 million over the period, underlying pre-tax profits rose 5.5% to £110.2 million thanks to a 10.4% hike in its retail broking and travel business.

Cruise ship used by Saga

08:57

'Plenty to be tentative about'

According to analyst at Spreadex Connor Campbell -

There was plenty to be tentative about this Friday morning, including the latest threats from Kim Jong-un, Theresa May’s Brexit speech in Florence and the weekend’s German election.

The FTSE fell 0.2% after the bell, returning to 7250 having tried, and failed, to break back through 7300 earlier in the week. It’s lucky – its initial decline could have been far worse given that its mining and banking stocks are all in the red. The pound, meanwhile, pushed 0.1% higher against the dollar having risen back above $1.355 yesterday evening, but was less successful against the euro, where it slipped 0.3% ahead of the Eurozone’s flash manufacturing and services PMIs.

How sterling – and, in turn, the FTSE – performs across the rest of the day is going to be dependent on the state of Theresa May’s Brexit speech. Not only what she proposes, but how the EU reacts to the comments – the fact she is going to ask Michel Barnier and co. to be ‘imaginative and creative’ suggests they may not go down well.

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